January 24, 2013

Wisconsin's budget picture brightened Thursday, with new estimates that show a surplus will grow to $484 million, giving Republicans and Gov. Scott Walker even more room to pursue their tax cutting agenda.

The estimate from the nonpartisan Legislative Fiscal Bureau was nearly $137 million better than one Walker's administration released in November. The numbers will be used by Walker as he puts the final touches on his two-year spending plan, which he's set to unveil on Feb. 20.

Just in case you have forgotten where things stood when Walker began, let's recap:

In 2011, Walker took office facing a roughly $3 billion budget shortfall and attacked the problem with deep cuts to education, local governments and other programs. He also forced public workers to pay more for health insurance and pension benefits, and effectively ended workers' collective bargaining rights, leading to an unsuccessful attempt to recall him last year.

The surplus this time makes it easier for Walker and Republicans to follow through on their promises to cut income taxes while also increasing spending on K-12 schools.

Walker said Tuesday that he thought state income taxes could be cut by about $340 million, and that it would amount to a roughly $200 savings per household over the next two fiscal years. Details were still being worked out, he said.

Walker said in a statement Thursday that the larger surplus "will allow hardworking Wisconsin taxpayers to keep more of the money they earn because I plan to move forward with an income tax cut targeting the middle class."

Comments

Wisconsin's budget picture brightened Thursday, with new estimates that show a surplus will grow to $484 million, giving Republicans and Gov. Scott Walker even more room to pursue their tax cutting agenda.

The estimate from the nonpartisan Legislative Fiscal Bureau was nearly $137 million better than one Walker's administration released in November. The numbers will be used by Walker as he puts the final touches on his two-year spending plan, which he's set to unveil on Feb. 20.

Just in case you have forgotten where things stood when Walker began, let's recap:

In 2011, Walker took office facing a roughly $3 billion budget shortfall and attacked the problem with deep cuts to education, local governments and other programs. He also forced public workers to pay more for health insurance and pension benefits, and effectively ended workers' collective bargaining rights, leading to an unsuccessful attempt to recall him last year.

The surplus this time makes it easier for Walker and Republicans to follow through on their promises to cut income taxes while also increasing spending on K-12 schools.

Walker said Tuesday that he thought state income taxes could be cut by about $340 million, and that it would amount to a roughly $200 savings per household over the next two fiscal years. Details were still being worked out, he said.

Walker said in a statement Thursday that the larger surplus "will allow hardworking Wisconsin taxpayers to keep more of the money they earn because I plan to move forward with an income tax cut targeting the middle class."